By Karim Hammam
Lloyds Banking Group reported a pre-tax profit of £2.3 billion for the third quarter, nearly double the £1.2 billion recorded a year earlier, driven by higher interest rates that increased net interest income by 10%.
Impact of motor finance provision
Last year’s figure was depressed by an £800 million provision for the motor finance mis-selling scheme, which remains on hold amid legal challenges. Excluding that impact, underlying earnings still strengthened year-on-year.
Chancellor announces temporary bank tax increase
The results came a day after Chancellor John Healey’s autumn Budget statement, which introduced a temporary extra 3% surcharge on bank corporation tax, doubling the current rate from January. The measure aims to raise £1.5 billion over 15 months to help fund household energy bill support.
